Plug Power Inc (NASDAQ: PLUG) Shares closed down 5% in Monday’s regular session.
What happened: Shares fell despite an announcement on the day the company was partnering with Chart Industries, Inc (NYSE: GTLS) and Baker Hughes (NYSE: BKR) to become “key investors” in the formation of a new private infrastructure fund exclusively of clean hydrogen called FiveT Hydrogen Fund.
The fund will be dedicated to the delivery of clean hydrogen infrastructure projects on a scale, according to a statement from Plug Power.
While Plug Power says it intends to commit EUR 160 million ($ 200 million), Chart Industries, a global manufacturer of equipment for the industrial gas and energy markets, and Baker Huges, an energy technology company, will launch at EUR 50 million ($ 60 million), respectively.
The Fund will “exclusively finance projects” for the production, storage and distribution of clean hydrogen, according to the statement.
FiveT, denominated in euros, will be offered only to qualified and verified investors and aims to raise EUR 1 billion ($ 1.18 billion) from financial and industrial investors, according to Plug Power.
The initial investment covers only 26% of the fund’s stated fundraising goal.
Why does it matter: Last week, Plug Power’s shares rose 10.6% after the hydrogen solutions company announced plans to build a green hydrogen production plant in cooperation with Brookfield LP from renewable partners (NYSE: BEP) and Brookfield Renewable Corporation (NYSE: BEPC).
Share price: Plug Power shares closed down 5.16%, at $ 33.44, on Monday, and rose 0.18% in the after-hours session.
Benzinga’s opinion: The fact that FiveT provides financing for projects or potential customers raises a concern about the demand for clean hydrogen products and could be a potential reason why investors are not enthusiastic about the announcement.
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